FIRE Girls Pension Diary - Aim High & Dream Big

pterri

Firegirl said:

@warrenb so glad the calculator brought you good news!

The below are all just rough figures but give a good idea of what I’m thinking.

I’ve been plugging in some numbers for my perm job.  A mixture of salary sacrifice and company contributions should see £40000 a year go into my pension.

If I do this, according to the calculator I’ll have 1 million and can retire, reduce hours or have the choice at age 52.

If I do actually want to retire at 52 I will need £200000 in my ISA to bridge the gap until I can take private pension at 57.  Even as I type this I think how difficult it must be to adjust to spending it all when you’ve saved all your life😆

Also got me thinking about different phases of retirement because I actually think I’d need more money than I do now if I was off every day. I currently wfh 4 days a week and they are mostly no spend days.  If I was off I’d def be out for coffee lunch, popping to the shop or doing something that costs money. You know what it’s like you go for a pint of milk and you come out with several extra items😆 (Is this what people never feel like they ever have enough! We’re talking crazy amounts of money here and I am grateful to be in this position! Almost embarrassed typing 😆)

In other news…. my eldest son has thrown me a financial and emotional curve ball and he might want to go to University afterall. He’s really hoping for a graduate apprenticeship.  Other option is 1 year of college stay at home and then go into the second year of University.  It’s all dependent on grades.

Well hope you are all sleeping better than me!  Have a good day😃

On the grad apprentice thing, we have lots where I work. They would normally enter the workplace with a degree (and the debt to match, you need a masters really to be a chartered engineer so that’s four years full time study). These days we have lots going the apprenticeship route, they can earn good money, gain valuable
relevant experience and possibly be sponsored. Also, many decent jobs really don’t require a degree. We have project management apprentices, they can learn in the job with decent A levels and there are professional accreditations  they can get later. It’s a good trend in my view. 

michaels

Cobbler_tone said:

Great to have a plan but at the same time I have found it quite consuming (and a waste of energy) to obsess over it, especially if you don't 'love' your job and a few years left. For me it is a balance of having a great life now and retiring ASAP, the D day is 58 in three years. We are working on 50% of income vs working income and when you look at going from running 2 cars to 1, the amount you spend on fuel, work clothes, other associated work spend, the sheer amount of NI and IT, you can cut your cloth accordingly. On top of that we currently save 30% of our income between us and maximise pension contributions to escape higher tax bills. Not forgetting that if you give up full time work, you can easily bring in a few hundred quid a month with a PT job, which would cover running your house. If you have worked all your life, you will either need a lot of hobbies or get bored and want to do something else on your terms. On top of that you get the cash injection from the state at 67, so you can factoring in an element of bridging.
I love my kids unconditionally but maybe I am a bit more conscious of my own existence and we all have a life to live ourselves.
There seems to be so much talk about providing for our kids throughout their lives. Maybe it is driven by the type of relationships we had we our own parents. They have a roof and the lesson I have always drilled into them is to be strong, independent, not rely on anyone else and hard work will get you wherever you want to be. 'Most' kids are extremely privileged in this country and it's not always healthy.

100% agree with you re kids.  I had to 'stand on my own two feet' (although I guess with the thought there was always a safety net of having a place to go to if all else failed, my parents never felt the need to bank roll any improved lifestyle for me even if they could have afforded to and I seem to be in the minority of only offering the same to my kids. (Disclaimer, I do intend to downsize at some point and use some of  my hpi gains to support them onto the property ladder)

One of the most depressing conversations I have had with my kids recently is when my second daughter said she would rather be skinny than healthy or smart   I may have grown up in the 70s but I thought even then the battle over whether women should be equal or not had bene won seems we have regressed since then. 

pterri

michaels said:

Cobbler_tone said:

Great to have a plan but at the same time I have found it quite consuming (and a waste of energy) to obsess over it, especially if you don't 'love' your job and a few years left. For me it is a balance of having a great life now and retiring ASAP, the D day is 58 in three years. We are working on 50% of income vs working income and when you look at going from running 2 cars to 1, the amount you spend on fuel, work clothes, other associated work spend, the sheer amount of NI and IT, you can cut your cloth accordingly. On top of that we currently save 30% of our income between us and maximise pension contributions to escape higher tax bills. Not forgetting that if you give up full time work, you can easily bring in a few hundred quid a month with a PT job, which would cover running your house. If you have worked all your life, you will either need a lot of hobbies or get bored and want to do something else on your terms. On top of that you get the cash injection from the state at 67, so you can factoring in an element of bridging.
I love my kids unconditionally but maybe I am a bit more conscious of my own existence and we all have a life to live ourselves.
There seems to be so much talk about providing for our kids throughout their lives. Maybe it is driven by the type of relationships we had we our own parents. They have a roof and the lesson I have always drilled into them is to be strong, independent, not rely on anyone else and hard work will get you wherever you want to be. 'Most' kids are extremely privileged in this country and it's not always healthy.

100% agree with you re kids.  I had to 'stand on my own two feet' (although I guess with the thought there was always a safety net of having a place to go to if all else failed, my parents never felt the need to bank roll any improved lifestyle for me even if they could have afforded to and I seem to be in the minority of only offering the same to my kids. (Disclaimer, I do intend to downsize at some point and use some of  my hpi gains to support them onto the property ladder)

One of the most depressing conversations I have had with my kids recently is when my second daughter said she would rather be skinny than healthy or smart   I may have grown up in the 70s but I thought even then the battle over whether women should be equal or not had bene won seems we have regressed since then. 

Home ownership is a massive issue, I know grads here delaying joining the DB so they can scrape a deposit together. It’s one area where ‘this generation’ are massively disadvantaged. I’m 56 and paid off my mortgage years ago (bought at a lucky time). I’d love to be 20yrs younger but honestly I’m not sure I’d even want to be 10yrs younger given what that would cost me for a home. I can only contemplate early retirement because of housing affordability, I started really pouring money into my SIPP and ISA and AVCs to add my DB once I was mortgage free. 

I’m luckier than young people today, I’m certainly not working any harder or giving up luxuries. 

michaels

pterri said:

michaels said:

Cobbler_tone said:

Great to have a plan but at the same time I have found it quite consuming (and a waste of energy) to obsess over it, especially if you don't 'love' your job and a few years left. For me it is a balance of having a great life now and retiring ASAP, the D day is 58 in three years. We are working on 50% of income vs working income and when you look at going from running 2 cars to 1, the amount you spend on fuel, work clothes, other associated work spend, the sheer amount of NI and IT, you can cut your cloth accordingly. On top of that we currently save 30% of our income between us and maximise pension contributions to escape higher tax bills. Not forgetting that if you give up full time work, you can easily bring in a few hundred quid a month with a PT job, which would cover running your house. If you have worked all your life, you will either need a lot of hobbies or get bored and want to do something else on your terms. On top of that you get the cash injection from the state at 67, so you can factoring in an element of bridging.
I love my kids unconditionally but maybe I am a bit more conscious of my own existence and we all have a life to live ourselves.
There seems to be so much talk about providing for our kids throughout their lives. Maybe it is driven by the type of relationships we had we our own parents. They have a roof and the lesson I have always drilled into them is to be strong, independent, not rely on anyone else and hard work will get you wherever you want to be. 'Most' kids are extremely privileged in this country and it's not always healthy.

100% agree with you re kids.  I had to 'stand on my own two feet' (although I guess with the thought there was always a safety net of having a place to go to if all else failed, my parents never felt the need to bank roll any improved lifestyle for me even if they could have afforded to and I seem to be in the minority of only offering the same to my kids. (Disclaimer, I do intend to downsize at some point and use some of  my hpi gains to support them onto the property ladder)

One of the most depressing conversations I have had with my kids recently is when my second daughter said she would rather be skinny than healthy or smart   I may have grown up in the 70s but I thought even then the battle over whether women should be equal or not had bene won seems we have regressed since then. 

Home ownership is a massive issue, I know grads here delaying joining the DB so they can scrape a deposit together. It’s one area where ‘this generation’ are massively disadvantaged. I’m 56 and paid off my mortgage years ago (bought at a lucky time). I’d love to be 20yrs younger but honestly I’m not sure I’d even want to be 10yrs younger given what that would cost me for a home. I can only contemplate early retirement because of housing affordability, I started really pouring money into my SIPP and ISA and AVCs to add my DB once I was mortgage free. 

I’m luckier than young people today, I’m certainly not working any harder or giving up luxuries. 

I think we did make our own luck though, certainly the sacrifices I made to buy my house and then fill my pension (in terms of optional consumption spending) would be unthinkable to (most of) my kids generation.

Firegirl

@hugheskevi that is a clever way to think about drawdown! I like it and will remember that when the time comes!

@Cobbler_tone I do actually like my job depending on what week you ask me. 😆Pressures of working on projects are like a wave with very intense pressure points I’m not sure that my health will put up with it. I won’t risk my health for work any more so when I see that point of change I will change at that point no matter what age I am.

@pterri pitty your not in Scotland or I could have put u in touch.  My husband is a chartered civil engineer, but as most teenagers take zero advice from a parent, it’s actually not so helpful!😆 That’s exactly what he wants to do. The course is called Business and Project Management but really depends on his Higher grades this year (Scottish A-levels) I think they are quite competitive. His CV looks good for a just turned 17 year old…..employee of the month for McDs, over 200 staff. Won an award and £3000 for charity based on a group presentation. So a few things might help him stand out.

Kids….yes I’m a great believer in them finding their own way because I had so little but I def want to be a really good safety net for them.  My dad didn’t have much but I’ll never forget the time asking for my summer rent when I was at uni and I paid him back over the summer when I was home. This was in the days of cheque writing and posting rather than bank transfer!  BUT when I asked for 10p for the phone box he said no 😆 This paragraph is making me feel so old!!!

My oldest son has worked since he was 16 and has saved up for his own car.  It does surprise me that people get bought a car for their 17th Birthday. For me I think saving for your own gives you a lovely sense of excitement and achievement. But, you know, each to their own and everyone’s had different lives and upbringings.  I think for me I’d  like to give the kids a wee boost at the point they get married or buy a first house, or maybe a wee boost to a pension so when they retire they think aw mum had us well looked after😆 

If we downsize it will be if we want to and for funding holidays and fun!

@michaels kids take health for granted, if they are lucky enough to be healthy kids.  I think they are like brand new iPhones where as me at 45 have got a bit slow and clunky, like a 10 year old iPhone😆 I’m from an era where Bridget jones was portrayed as being fat! Totally bonkers. Must be tough for girls now….i know my boys follow all these body builders and I’ve had to make them healthy smoothies and feed them
loads of chicken and fish for protein, while they are still growing and in a bid to persuade them not buy protein shakes.  

Thanks to all of you for popping by and hope you all have a lovely weekend!

MallyGirl

A good friend's daughter is doing a Brightstart degree apprenticeship with Deloitte. It is going really well for her so far.
She's already earning more than her elder sister (qualifed physio) and she has no debt.
We got our daughter a car at 17 as she had spent every spare moment building up the work experience needed for a uni vet med application. It has been essential for all the placements and travels since. She was fortunate that we could afford to do so - and we appreciated giving up the taxi role
She will never make that much as a vet and will be paying towards the loan for her entire working life so we would like to be able to leave her something so that she has options - it is a very stressful profession and that worries us.

Firegirl

@MallyGirl

Degree apprenticeships are great! Love hearing the kids getting on well.  Great you could help your daughter with a car and help her towards her dreams.  That’s why I was saying each to their own. Every family is different and every kid is different. I struggle with deciding what help to give my kids which is a privilege really.  My parents couldn’t help me out at all. That makes me proud now that I’ve achieved today…..but you know why struggle, and why am I proud of myself.  What difference does it make really.

What do we want for our kids? Just to be happy and not struggle to buy food. Be content in life too! I’m such an idealistic dreamer 😆 I remember a sociology class saying, it doesn’t matter if your don’t have money as long as your happy and the teacher went mental and said what are people meant to do say happy in a pot three times and then they have something to eat😆

Firegirl

Getting close to my age 47 TYE target

Age 47 - 2026 - £420,061

Pension 1-£218, 000
Pension 2-£62, 500 (Approx)
Pension 3-£12,000  (Approx)
ISA-£126, 000

Total- £418, 500

LL_USS

To help your kids or not to help? We all think differently: https://www.theguardian.com/lifeandstyle/2024/nov/17/bank-of-mum-and-dad-why-we-all-now-live-in-an-inheritocracy?utm_source=firefox-newtab-en-gb. Some takeaways:
(1) Bank of mum and dad is not unusual in the UK any more, though this practice in other countries has a different dynamic (parents help children and children take care of parents in their old age)
(2) To help or not, both has its pros and cons. Interviews show that a young adult who's got a bankroll from parents could end up having an impratical career choice. Another without help could feel a sense of resentment and stress from all the struggles.

(3) It seems to be best to develop financial independence from the initial boost from parents's help

(4) Baby boomers are the richest in terms of property and Millenials the poorest, with small chance to get on the property ladder.

My parents had barely enough to support me till before university, and the rest I had to figure out myself. I've done okay generally and quite well financially. But I have always felt guilty when spending money on myself. Similarly, some colleagues of mine, who are from worse-off background, now accumulate millions but still treat themselves terribly and apparently miserably. It is hard to keep a balance - to be healthy and happy.

Firegirl

Thanks for sharing @LL_USS. Very interesting and thought provoking article.

Oh my goodness! Yes! The guilt of spending money on yourself. I’m exactly like this!  Now since contracting I have managed to shake this off a bit and have enjoyed buying a few clothes from Mint velvet.  It’s a weird feeling isn’t it? Your standing in a shop thinking, I like it but I don’t need it, do a REALLY want it, I’m not really worth it, I don’t need it, that money would be better used by a charity, I don’t need it, I’ll just leave it.😆.   But family holidays I pay for with zero guilt!

I think I want to give my kids some very specific and targeted help, not just a constant bank roll.  So your point 3 will be what I aim for.